Date: Jul 24 2017
Title: Air Freight Market Update Report for Week 30

Major congestion at the regions' transit hubs eased last week in tandem with a decline in demand for space. Airfreight volumes from Asian gateways remain relatively strong across the region. Origins such as Hong Kong, Bangkok and Vietnam continue to report strong demand and tight space conditions. Booking cargo in advance is a necessity at these gateways.

Following are highlights from around our Asian network.

Bangladesh: Congestion at the Dhaka airport is building.  Cutbacks in cargo allocations by major carriers and delays at the port of Chittagong are contributing to the congestion. Air rates are trending up.

Shanghai: There are no reports of congestion or backlogs at PVG. Overall market demand is soft; however, space to LAX is tight because a number of freighters were cancelled.
Hong Kong: Unlike Shanghai, market demand for space remains strong and available space is tight. Large volumes of Apple products are shipping to the US East Coast. For the most part cargo capacity is full and 2 – 3 days advance booking is required. 

Taiwan: There is approximately 110 tons of cargo backlogged at TPE airport.  The majority of the backlogged freight is transit cargo from Xiamen. Transit times to the US and Europe are running 3 – 5 days. It is recommended to place bookings at least three working days prior to cargo hand-over.

Korea: Congestion at ICN has been cleared as the Hyundai and GM recall programs wound down and local shipper demand eased during the countries traditional summer vacation season. These market conditions are expected to continue through the middle of August. Chrysler will begin a new project program which will involve 200 tons of airfreight destined to ORD and run through September. Rates are unchanged from last week. 

Thailand: Demand for space to the US and Europe is strong and is expected to continue through month end. Transit times are running longer than normal and one week advance booking is required. 

Vietnam: There are reports of backlogs at SGN and HAN caused by insufficient capacity to meet demand. Nike is exporting heavy volumes of air freight on a daily basis. All airlines are overbooked and are requesting 10 days advance booking. Transit times to LAX are +7 days and 10 days to ORD and JFK.  

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